Category Saving

As of mid-2025, savers are facing a changing financial environment. After the Federal Reserve raised interest rates in 2024 to fight high inflation, banks responded by offering higher returns on certificates of deposit (CDs) and high-yield savings accounts. Some 1-year CDs even offered over 5% APY, which gave savers a great opportunity to grow their money safely. However, in 2025, these rates have stopped rising and are starting to level off. There’s talk that the Fed might begin cutting rates soon, but ongoing inflation and political uncertainty could slow that down. For now, savers should carefully consider whether to lock in current CD rates or stay more flexible in case better options appear later.

Gen Z is stepping up its money game in response to today’s tough economy. A recent study from Bank of America’s Better Money Habits found that 72% of young adults have made smart changes to improve their financial health. Even though high inflation and rising costs make it harder to get ahead, many Gen Zers are saving more, paying off debt, and spending less on non-essentials like dining out. Over half say the cost of living is their biggest challenge, but instead of giving up, they’re finding ways to manage their money wisely. This shows that even in uncertain times, Gen Z is learning to make thoughtful and responsible financial choices.

As the cost of living continues to rise in the U.S., Gen Z is changing the way they manage money. According to Bank of America’s 2025 Better Money Habits study, 72% of young adults ages 18 to 28 are working to improve their finances. Instead of being reckless spenders, many are saving more and cutting back on unnecessary spending. This includes spending less on things like groceries, eating out, housing, and utilities. More than half say they don’t earn enough to live the way they want, showing how deeply they feel the pressure of today’s economy. These financial challenges are pushing Gen Z to be more mindful and responsible with their money.

As of July 2025, the U.S. Federal Reserve has chosen to keep interest rates unchanged, despite pressure from President Trump and ongoing concerns about high inflation and rocky global trade. This move reflects a tricky situation: while inflation remains above the Fed’s target, signs of a slowing job market and unstable economic policies make future decisions harder to predict. With no clear end in sight, many Americans are becoming more cautious with their money. They're cutting back on non-essential spending, building up savings, and trying to prepare for possible economic challenges later this year. This shows how uncertain financial times can influence everyday choices and household budgets.

Many Americans are spending a lot of money eating at restaurants, even as they worry about saving enough for retirement. With prices rising due to inflation, some people are paying over $40 per person each time they eat out. This adds up quickly and can take money away from savings that could be used later in life. While going out to eat is often convenient and enjoyable, it can also become a costly habit. In today’s uncertain economy—with high grocery prices and concerns about Social Security’s future—cutting back on restaurant spending could help people better prepare for retirement.

A recent survey by Schwab shows that many American workers are feeling less confident about their retirement plans because of ongoing inflation. With prices staying high and interest rates not dropping, people are worried about how much money they’ll need in the future. Even though confidence is down, most workers are not cutting back on contributions to their 401(k) retirement plans. Instead, they're choosing to spend less on everyday things in order to save more for the long term. This shows that people are taking inflation seriously and making smart financial choices to protect their future.